Colombia - América Móvil's Colombian subsidiary, Claro, is forging a strategic alliance with Hughes Network Systems, a satellite services provider controlled by Echostar, to significantly bolster enterprise connectivity and expand private network projects across Colombia. The collaboration aims to integrate satellite broadband solutions with Claro's existing terrestrial fixed and mobile networks, particularly targeting regions where traditional infrastructure deployment faces challenges.

The announcement, building upon comments made last September by Hughes' general manager for the Caribbean & Latin America, Hugo Frega, underscores Claro's commitment to delivering a comprehensive suite of communication services. By leveraging both high and low Earth orbit satellite technologies offered by Hughes, Claro intends to provide businesses with enhanced operational stability and continuity, irrespective of their geographic location within Colombia.

"With the goal of offering a comprehensive portfolio of fixed, mobile and satellite services, strengthening coverage in hard-to-reach areas and ensuring business connectivity in more corners of the country, Claro… will work with Hughes to offer satellite connectivity solutions in high and low orbit," the company stated.

This strategic move comes as Claro, the leading mobile network operator in Colombia, intensifies its investments and partnerships to broaden its network reach and capitalize on the growing demand for private network solutions. The telco has already demonstrated its capabilities in this area, notably through the deployment of a private 5G network for the national oil company Ecopetrol and a private 4G LTE network at the Puerto Bahía port in Cartagena, the latter in collaboration with its long-standing network vendor Nokia.

Fiber Expansion Remains a Key Focus

While embracing satellite technology, Claro is also aggressively expanding its fiber optic infrastructure to connect more businesses. The company has set an ambitious target to extend its fiber network to 180,000 enterprises across the country this year, backed by an estimated investment of US$18 million.

"These investments add to those constantly being made to foster a comprehensive ecosystem of technology and coverage, which includes 99% of the country covered by mobile technologies, 5G in 20 cities and 146 municipalities with fiber, in addition to two submarine cables and datacenters, all of which serve as digital highways for the country's development," affirmed Claro Colombia president Rodrigo de Gusmao.

Further demonstrating its commitment to fiber infrastructure, Claro had previously announced an investment exceeding US$200 million last September. This significant capital injection is earmarked for enhancing and modernizing its fiber network, including the integration of artificial intelligence (AI) capabilities into its optical backbone. In the residential sector, Claro Colombia aims to reach 4.5 million homes passed with fiber this year.

Market Dynamics and Competitive Landscape

Claro's proactive approach to integrating satellite broadband into its enterprise offerings reflects a growing trend in the telecommunications industry to overcome geographical limitations and cater to the increasing need for reliable connectivity in remote or underserved areas. Satellite technology offers a viable solution for businesses operating in regions where deploying traditional fixed-line infrastructure is economically or logistically challenging.

This partnership with Hughes positions Claro to better compete with other players in the Colombian market who may also be exploring satellite solutions or focusing on expanding their terrestrial networks. The ability to offer a hybrid connectivity model – combining the strengths of terrestrial and satellite networks – could provide Claro with a significant competitive advantage in securing enterprise clients with diverse connectivity requirements.

Looking Ahead

The collaboration between Claro and Hughes is expected to drive significant improvements in enterprise connectivity across Colombia, fostering greater operational efficiency and enabling digital transformation for businesses in various sectors. The integration of satellite technology, alongside ongoing investments in fiber and mobile networks, underscores Claro's commitment to building a robust and resilient digital infrastructure that supports the country's economic development. The market will be closely watching the rollout of these satellite-based solutions and their impact on enterprise operations in the coming months.

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